August 2021: Positive expectations while facing the pressure
In August the European Foundry Sentiment Indicator (FISI) increased again after the slight dampener in the previous month. The plus of 1.0 points brings the index to a value of 109.7. While the current business situation is generally rated poorer than in the previous month, the more positive expectations for the coming six months pull the index up on balance.
The vehicle construction OEMs are noticing the problems in the procurement of electronic components more and more and are announcing short-time work in rows. Supplying foundries are expected to show a degree of flexibility that no serious production planning can match.
Meanwhile, the considerable cost increases in the procurement of input materials and on the energy market are also putting pressure on foundries running at full capacity. Nevertheless, the excellent order situation in the machine engineering sector gives foundries a positive outlook for the future.
At the same time, the Business Climate Indicator (BCI) stopped its record reaching development in August. The slight decrease of 0.13 points brings the index to its to 1.75 points. The current business situation is assessed as overall positive due to the excellent order-book levels from EU and non-EU countries.
The FISI – European Foundry Industry Sentiment Indicator – is the earliest available composite indicator providing information on the European foundry industry performance. It is published by the European Foundry Association (CAEF) every month and is based on survey responses of the European foundry industry. The CAEF members are asked to give their assessment of the current business situation in the foundry sector and their expectations for the next six months.
The BCI – Business Climate Indicator – is an indicator published by the European Commission. The BCI evaluates development conditions of the manufacturing sector in the euro area every month and uses five balances of opinion from industry survey: production trends, order books, export order books, stocks and production expectations.
Tillman van de Sand
Secretary Commission for Economics & Statistics
phone: +49 211 68 71 — 301